Archive for October, 2010

Gain Control With Online Auto Loans

Thursday, October 21st, 2010

When applying for auto loans, the applicant has come in a sort of submissive state which means that he/she has to comply with the interest rate and terms charged by the lender. However, the competition in the lending industry has made it easier for applicants to get fair deals on auto loans and the interest rate. However, even though there are a number of dealerships and lending institutions which provide the finances, gaining a control over the procedure is something else. For example, when going into the dealership, the only point of control is the applicant’s choice of the car. After that, all the arrangements, interest rate decision, dealings, getting the loan approval depend on the price of that car and the role of dealer. Read More…

Does Account Closing Get Auto Loans Approval

Wednesday, October 20th, 2010

Most of the auto loans applicants usually take advice from credit consultants, lending pundits and dealers on how they can improve their credit score and then get approved for the loan. Most of these advisers are experienced and know what they are saying and also judge the capability of the borrower before telling them what should be done to get the credit score up. However, some of these advisers are inexperienced and sometimes give faulty advice on purpose or accidentally which can lead to further damage to credit score. One such harmful advice is closing down old accounts. Read More…

Bad Credit Auto Loans Refinance Requirements

Tuesday, October 19th, 2010

All borrowers of bad credit auto loans have the same complaint that their monthly installments are too high. Even if an applicant goes for a cheap loan, the interest charged is so high that it can be difficult for the borrower to make the payments on time. However, many of the applicants take refinancing as an option when going for bad credit auto loans and it is a good decision to always do so. However, even these lenders have certain requirements from the applicants which is important to clear otherwise the applicant would have to stick with their current high monthly installments. Read More…

Direct Bad Credit Auto Loan

Monday, October 18th, 2010

Many surveys and studies have shown that more than seventy percent of the American population depends on credit facilities to purchase their cars. This is a significant boost for the lending industry in particular but there is more to rejoice for special lending institutions. After the recent global economic crisis, it was seen that the number of applicants for bad credit auto loan facilities considerably and out of the aforementioned seventy percent, most of the population goes to special lending institutions. Now, when chances are that more and more people are going for bad credit auto loan, several new places have come up to provide them with finances and earn the interest that is charged on the bad credit auto loan. Read More…

Calculations Involved In Auto Credit Financing

Monday, October 18th, 2010

Auto credit leasing or personal contract purchase is the new entity in the lending community and transactions which allows borrowers to take a car for few years at very low monthly installments. The main talking point about this auto credit option is that the applicant can get finances for any car, get a new car after few years and still pay low monthly installments for it. If one hears it like this then it might seem a little hard to believe but the following mentioned example carries the calculations involved in leasing which can be read to see for sure.

For example, take the price of the car in the current scenario to be 1000 dollars. This is just taken as example to clarify the calculations. Let the loan term be a couple of years and the interest charged be 10 percent. When auto credit is taken, the yearly installment comes to 600 dollars every year because of the interest amount addition in the loan. However, in auto credit leasing, the lender or leaser calculates the price of the car after two years. It is calculated by checking the reduction rate of the car or depreciation factor. Let’s say that the car’s price drops to 700 dollars after two years. The depreciation factor is taken high but it is the case with many cars out there.

Now, the difference of the prices is 300 dollars and this is what is taken on auto credit. This means that by adding the interest the total money that the applicant has to pay back over the course of the loan is 360 dollars. One can easily see that the price of the total installment in auto credit leasing is less than what it is for simple auto credit for the first year. However, this thing should be noted that the applicant doesn’t retain the car and gives money just for driving it for few years.

Getting Bad Credit Auto Loans from a Private Party

Sunday, October 17th, 2010

Some time back, getting bad credit auto loans were considered impossible because the lenders already had so many good credit clients on their hands. Moreover, if approved, the interest charged on the loan was so high that the applicant had to face a lot of difficulties in managing the installments. However, the rise in lending competition has made it easier for people to get easy approval on bad credit auto loans. Moreover, the online lending institutions make it easier for them to get more options on the loan. Also, there are a number of places from where an applicant can get bad credit auto loans – dealerships, lending companies, credit unions, banks and even private parties.

In fact, private party bad credit auto loans are gaining popularity because of the fact that the applicant can buy the car directly from the owner. It is seen that owners are more careful regarding how they sell their car which means that it is easier to get a car that is in good condition on these loans. Moreover, most of the private parties don’t try any of the gimmicks that the lending salespersons or dealership in charges do. Hence, it becomes easier to get the loan at a decent term and settings.

Private party bad credit auto loans can be acquired for any sort of automobile – a car, van, truck, bus etc. which makes them quite beneficial because of the fact that the applicant doesn’t have to run around for the finances and then run for the vehicle. Both the things are being given at the same stop and that too without any problems and gimmicks. However, this doesn’t mean that there aren’t people who try to sell fake cars on bad credit auto loans. Just ensure that the car is in working condition before going for the loan arrangement.

The Benefits Of Auto Finance Via a Credit Union

Saturday, October 16th, 2010

When applying for auto finance there are a number of institutions that one can choose from and some prominent among them include banks, dealerships, private lenders and credit unions. Out of these credit unions are the least popular because of their membership criteria. These institutions charge some fee to gain their membership but the services provided are certainly worth the fee. Credit unions, basically, are a sort of public financial forum. This means that by gaining the membership the person is gaining access to all the financial help he/she requires. Read More…

Problems with a First Time Auto Loan

Friday, October 15th, 2010

A few years ago, people would have never even considered going for an auto loan without a credit score or any credit record. Lenders wish to see some documents which showcase the fact that their possible client has the discipline and financial management skills with which he/she can pay back the loan at time. However, none of this can be provided in a first time auto loan as the credit score is nil. But, the rise in competition has made it easier for people to get approved for the finances with a low credit score. Read More…

How Much to Pay for My Bad Credit Auto Loan – An Offline Calculation

Thursday, October 14th, 2010

Loans are meant to be rescuers when you’re deprived financially. However, when they’re not given the importance they deserve, or if they’re not taken from the right places they can, by all means, add to your financial woes. Not able to meet the monthly expenses one need to pay out as the interest amount, many borrowers gotten dusted. Hence, a borrower should calculate by guesstimating what would be his liability if he takes up a loan at a particular rate of interest. Bad credit auto loans which make better relevancy when linked to people with poor credit scores fall under the same sort of loans I talked about. Calculators available online simply make the job easy by reflecting exact figures with which one gets to know how much is their liability to be exact. Read More…

Auto Loan Negotiation

Wednesday, October 13th, 2010

Contrary to popular beliefs and opinions, the terms and condition of an auto loan isn’t not fixed or constant. As a potential auto loan applicant, as long as you have good credits, you can always negotiate and bargain with the lender the terms and condition  of the auto loan that you intend taking. Read More…